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tv   Fast Money  CNBC  December 5, 2013 5:00pm-6:01pm EST

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of the year at the lexus december to remember sales event. this is the pursuit of perfection. >> this is "fast money," america's post market show. the dow up 16,000. we hardly knew you. and and how about this for return of value. bitcoin has jumped 60 times over the last year. could itd give a real payoff? plus losing momentum. we have got the ceo of one f
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those companies in an exclusive interview. our traders tonight are steve, john, dan, and guy. so let's get straight to our top story here. we're taking a look at the stocks that could potentially break out here. bye or buy where the traders will have to decide whether a stock breaking out is actually a buy or a bye. let's start off with apple. do you know how to say apple in chinese? >> i do not. >> ping-wa. that is why we have seen apple break out in the last ten, 12 trading sessions? >> stocks are 15% off the april lows. if you bought this at any point earlier in the year you have
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nice gains here. so now it's at 5.70. i think you bye it. the story is in tact. the china mobile deal is going be a great deal for the company. geographic expansion is one of the major legs of the story. i think on the product front you won't have a heck of a lot in the next couple of months. i think you can get the stock back towards the 550 level. >> you are saying this is already the china mobile story. when it comes on december 14, that that will be a seldom news event but on that pull back you could be looking at bying the stock? >> now he is a more legitimate increase. that's going to put a floor on the stock. >> do you like this? what did the options market say about this? >> there are still a lot of
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upside, the real deal on the ground right now. as well as the iphone 5s and the ipad mini with retina display, they're going to kill it with these products, folks. could we correct by $20, $25? sure, in a heartbeat. and could we go through $600? just as easily. three months from now the stock is more towards 6.25 than 5.50. >> it was up more than a percent and then backed up. >> obviously the tape didn't help. i thought that push up the 5:55. you want to play again, that's actually sort of a 68.2% correction off of the whole thing as well.
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it's interesting. i'm in dance camp. i think you have got to get a pull back. >> so bye for you as well? >> i didn't know. >> i'm confused there. >> the bottom line for the viewers. let's move on. now that we're clear about the rules of the game. the bioparma company. this is after the stock is already been up 100% so far this year. so guy, buy or good-bye? >> you know my answer. >> buy. >> buy. and we have talked about -- forget about this year. the stock had a $30 handle and bid all over this name and people will say it has gotten ahead of itself. they have said that every ten for the last three or four years. you want to go on and on.
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everything ubs said today is things we have been saying for a while. they finally upgraded to buy. >> seems like a little late. would you purchase? would you go long? >> i'm with guy on the buy. i'm in the buy buy, not the bye bye. and from under 40 a share, he still likes it. i have got to respect that. >> i'm glad that we're talking about s everybodyelgen in parti. >> they are. this is is a real stairry zone.
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the retail investor is usually hit or miss there. obviously those guys are scaring there. . does this break out and mark a turn around? do you buy it meaning purchase or do you bye it? >> i think you say good-bye to this one. >> really? >> it's really scarey. it's down 56% year to date. jp morgan said be careful shorting the names. the stock was up 95%. in november the stock is down. it's based on nat gas prices. you have to believe that longer term that nat gas will stay
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elevated because these guys hedge out about a year or two. >> steve makes a great point in 2010 we talked about this stock being a take out target at $120. there was a lot of talk, not just random speculation. the stock has come up some 75, 80%. i think you stay with it because there is always a chance that somebody takes a fly. >> the problem with this one is there is a 32% short interest. so i would -- if i say sell it, i'm not saying short it. you're saying don't own it. >> maybe take a flier because of what he just said. you have got be very careful. >> and you're saying buy it? >> i'm in the buy camp. >> i'm sorry.
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>> let's get to netflix here. best performer in the s&p 500 so far this year. announcing a second season of house of cards with all 13 episodes set to be released on valentine's day. what do you do? buy or good-bye? >> i'm a bull on almost every stock and i am a bull on netflix but at a level. a price level. saying various stocks were looking frothy and things like that. i do think you get a chance to get in at around 320.
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>> i sat at this decembering and said i would be a buyer that night, at close. and i also believe that the guys that are looking for this to be a lid on where he sold his stock are going be disappoint ed. >> you have down 20%. >> that really was a ringer for a lot of these financials. >> 1760 we're still headed there. you mentioned five days in a row. i think if you're bullish you want it to trade down. we talked about that last night. the last couple of days, when the market has turned and seen the rally back up to the upside,
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a few months or weeks ago, that rally would have continued. last couple of days its rolled over again. the first time you have seen action like that in a while. i think we test 1760. >> speaking of treasuries, you saw a lot of action in tlt today. >> this is an etf on bonds. so when bonds are going down, of course, yields are going up, that is what you would anticipate if you get a good jobs number tomorrow. that's why the market has been weak. i think we're likely to get the opposite if this big options trade i'm tracking is right. they sold at the 101 strike with the bonds, the etf, tlt trading 102.50, they sold at the 101 spike. maybe we see a very small blip but not a spike. >> what's the feeling on the floor. >> everyone is playing that game. just right. you don't want it to be above
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200,000. somewhere between what they are looking for is just the right spot. >> listen, the whispers are getting up there. if you see the 250, the spx is down 20. i think it gets bought there but i think you will see a knee jerk reaction and that's when the bonds get nailed. >> this is something that we have all been talking about. it's 1750, let's call it. but every time, it feels like gloom and doom today. we're down 1% from the all time highs. so every time you feel like the sell off is really gaining traction, it's nothing. so you know what? even down to 1749, go. >> solar city and tesla, shares of both stocks getting a bump on this news. we will talk about his company's plan to offer tesla batteries to customers. plus the box office telling a different story than the stock market. hunger games catching fire cleaning up over the weekend but
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>> it's a tail of ticket sales versus the stock ticker.
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hunger games catching fire just had the sixth largest domestic box office weekend of all time. the stock has dropped even with the pull back we should note that lion's gate is up. >> nice to see you as soon. >> i'm sure a lot of people out there are happy with the stock overall and would make the argument that it is run up into hunger games sequel. what's the next big game coming out? >> we feel very good about tyler perry, christmas time, and divergent. the trailer played great in front of catching fire. we're excited about it. >> the book sales are actually better than the hunger games were. are you predicting this could be the next big block buster franchise? >> we feel good about the movie
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and the franchise potential but we don't want to spike the football to much. >> you have a nice cash flow situation. you doing anything special with that that you want to discuss? >> it's a conversation that we're having at a board level. i can tell you that both of those will be on the table. >> should we expect an announcement surrounding the board meeting? >> soon. >> that's it? >> the only thing i was saying, it turns out that big down day most of the people that sold our stock actually didn't own it. >> oh really? >> they will rue the day. >> we have to cut it short. we have a lot of breaking news for this hour but thank you so much for coming by and making time this hour. the breaking news is that president obama will be speaking on former south african president, nelson mandela's death.
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we will bring you that on the other side of this break. that's next.
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>> we are awaiting president obama to make a speech on the passing of former south african
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president, nelson mandela. john, what should we expect here? >> melissa, i think you can expect the president to speak with deep emotion about the passing of this leader and what it has meant to him and he recently took his daughters to africa and i believe they went to robben island to see the cell where nelson mandela was held. that was a moving moment for this and of course nelson mandela is watched throughout his lifetime as the struggle against apartheid reached fruition. when he was still in law school, he had been at robben island, president of south africa. all said they expect that the president will attend nelson
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mandela's funeral. >> global history for that matter of nelson mandela being the first black president of south africa and barack obama first black president of the united states. >> there is no question about that. the fact that president obama's father was from kenya, he feels a bond to the continent of africa as well. south africa is the most important economy. remembering, you know, the colonial africa went through a serial process of nations achieving their independence but the last on that list was south africa because the grip of the white national's government was so strong and the stakes were so high tremendously longer than it did places like kenya where president obama's father hailed from. a lot of emotion today from this
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president and i think you can expect him to point to the example of mandela as an example of statesmanship. but especially to our country which is so bitterly divided right now. >> this is truly a moment to highlight the importance of these new paths in history, of important people making brave new paths for the people. not only did the president do it, but he can also say take a look at nelson mandela and use it as a moment, so to speak. >> i would not expect for president obama to compare his experience with nelson mandela's. they don't compare it, really is the leading figure on the world stage in terms along with people
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people. >> of course their paths are very different. john i would imagine that this would be a big, big funeral where many of the world's leaders will come together. >> one former aide to president obama when i asked do you expect the president to attend the funeral, he said yes and so will every other important world leader. this is one that will rivet the world because of the stature of mandela and i expect that you will see something that is very, very rare in our lifetimes, an event of that magnitude. >> let's check in with chris bishop of cnbc africa. we want to know what the scene is like on the ground there. >> it's 20 past 12, pitch dark here and already people are starting to gather. people are crying. some people are carrying south
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african flags. the news is spreading like wild fire across this country. jacob zuma went on air live to announce it this evening about half an hour ago. as he said what many were feeling there, even though they knew that the day was going to come sooner rather than later, s it is a day that is devastating to all of us. to build a united non-sexist, non-racist democratic south africa that is prosperous. and i thought the words may us all rest in peace, god bless africa. it's very, very sad here at the moment. >> it is early and we are expecting the president to begin his remarks at any moment. are there any plans yet as far as ceremonies or services? >> well, the government has had their plan in place for sometime. obviously it will be a very huge
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funeral. it will be in eastern kay province. there is faulk of six, maybe seven days of mourning in this country. this is a man who touched everybody's lives here and people are going to be wanting to mourn. >> so six to seven days of mourning starting immediately. tomorrow, what are you expecting in terms of closures and in terms of gatherings? >> i think that many people will head for mr. mandela's home. >> chris, i'm sorry. the president is beginning to speak. let's listen? >> at his trial in 1964. nelson mandela closed a statement from the dock saying i have fought against white domination and i have fought against black domination.
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i have cherished the ideal of a democratic and free society in which all persons live together in harmony and with equal opportunities. it is an ideal which i hope to live for and to achieve. but if needs be, it is an ideal for which i am prepared to die. nelson mandela lived for that ideal and he made it real. he achieved more than could be expected of any man. and today he has gone home. and we have lost one of the most influential courageous and profoundly good human beings that any of us will share time with on this earth. he no longer belongs to us. he belongs to the ages. through his fierce dignity and unbending will to sacrifice his
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own will for the freedom of others, he transformed south africa and moved all of us. his journey from a prisoner to a president embodied the promise that human beings and countries can change for the better. his commitment to transfer power and reconcile with those who jailed him set an example that all humanity should aspire to whether in the lives of nations or personally. the fact that he did it all with grace and good humor and the ability to acknowledge his own imperfections only makes the man that much more remarkable. as he once said, i'm not a saint unless you think of a saint as a sinner who keeps on trying. i am one of the countless millions who drew inspiration from nelson mandela's life. my very first political action, first thing i ever did that
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involved an issue or a policy or politics was protest against apartheid. i would study his words and his writing writings the day he was released from prison gave me a sense of what human beings can do when they are guided by their hopes and not their fairs. like so many around the globe, i cannot imagine my own life without the example that nelson mandela set. and so long as i live i will do what i can to learn from him. michelle and his family, michelle and i extend our deepest sympathy and gratitude for sharing this extraordinary man with us. his life's work meant long days away from those who loved him
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most. i only hope for peace and comfort to his family. to the people of south africa we draw strength from the example of renewal, reconciliation and resilience that you made real. a free south africa at peace with itself. that's an example to the world. that's his legacy to the nation that he loved. we will not not likely see the likes of nelson mandela again. it falls to us as best we can to follow the example that he set to make decisions guided not by hate but by love. to never discount the difference that one person could make. the strive for a future that is worthy of his sacrifice. for now let us pause and give thanks for the fact that nelson mandela lived. a man who took history in his
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hands and bent the arc of the moral universe towards justice. may god bless his memory and keep him in peace. >> we have been listening to president obama touching tribute to nelson mandela, the former president of south africa who passed away this evening. he is one of countless of millions who drew inspiration from mandela's life. the president was truly touched and sent his condolences to the family and the people of south africa. >> he reminded us that his first political action came against apartheid. he referred to him as mandela's nickname in south africa. that is what you hear him called
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on the streets of south africa. he quoted martin luther king who said the arc of the moral universe bends towards justice and he referred to mandela as one of the people who bent that arc towards justice. the president is clearly moved by the example of mandela and said he would spend the rest of his life trying to learn from and live up to the example of mandela. >> thanks for that wrap up. we will have much more straight ahead. the american dream is of a better future, a confident retirement. those dreams, there's just no way we're going to let them die. ♪ like they helped millions of others. by listening. planning. working one on one. that's what ameriprise financial does. that's what they can do with you. that's how ameriprise puts more within reach.
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>> welcome back to fast money. we are live at the nasdaq market scythe in times kwar. solar city will use tesla's batteries to create a back up power. >> you know, when you look at a commercial building and you look at your utility bill, there is
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two parts of the utility bill. one is the cost for electricity and the other is the cost for the demand of that electricity. to put it in simple terms, i think people relate to this better, it's comparing miles per gallon compared to horsepower, that's your demand. so today a solar system can address the dos for the electricity. the story system, we can address the demand and some of the commercial customers are based on demand fees. now that you combine the solar system and storage system, we will be able to give customers more savings as no additional cost. >> is there any additional cost and this will sound naive. if there is any recall of tesla cars, putting the technology in
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question, is there any risk to the story for you? >> not at all. i can safely say. >> let's move on and talk about the investigation, the companies under investigation looking at whether senator jeff sessions wrote this letter and said in simple terms there is concern that solar city might become a company propped on the back of the taxpayer. >> he has lit a review that had incorrect facts. the truth is we have been following treasury guidance in hard established value on this. treasury is doing a broad review.
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when it comes to the tax credit of taxpayers out there, when a tax credit gets invested into the solar system it actually gets a return. there is actually a benefit. >> okay. and of course, you know, if the extrapolation of this analogy has gone bankrupt and you say that's absolutely off the table. if the subsidies were removed, what would happen to your company? >> if they were removed today, we would struggle. we do need it today to get to scale. but that is not actually a fair question. if you were to do that you would have to take subsidies away to different tax advantages that the fossil fuel industry has.
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if you were to take away those benefits for them, the cost of electricity would go up dramatically. >> you're saying that it's a risk that not just your company faces but every company? it is the same risk across the board? >> well, today, energy is subsidized. as time goes on, what we do know is our cost is coming down and the cost of fossil fuels continues to go up. the penetration of solar is only less than 1%. think of how much cost reduction will occur when you start getting to 10%, 20, 30% penetration. the cost is coming down. i'm highly confident that solar will be cost effective over the next five years. >> what is the status of senator session's inquiry into the company? obviously the inspector general is doing their investigation.
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obviously when senators or congressmen get into a room and they have got a hot button issue, this is a hot button issue where they can really sort of just give it to you. there is that risk just on the headline from a headline standpoint. is there a concern? what's the status there? >> well, we are 100% collaborative. we follow all the rules. any information that we want. |to be working with them, it is a broader view. we are 100% collaborative with the treasury. >> is that a possibility? >> no. there is no hearing scheduled. >> okay. thank you so much for joining us. we really appreciate it. >> thank you for having me. >> the ceo of solar city. this is a stock that's down 13%. a lot of it because of the
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article. but also 360% gain year to date. >> yeah. it's a great whacompany. if they can solve storage, then katie bar the door. >> this is is a step. >> they have to solve that. they have to deliver on the stoi storage of the energy produced during the daylight hours. if they can do that, then yes. >> a lot of people who don't want to get into the area don't want to get in because of subsidies. >> you have to be out of the area if you don't want to have that exposure. >> there is subsidies across the whole playing field. you can't just isolate it to solar. >> with this potential congressional investigation, with the inspector general investigation, that's always a headline risk.
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>> solar city. actually escalated over the weekend. they came back out and said you want to steer clear. you have got to be careful with names like this. >> dollar general hitting an all time high today. traders are seeing more opportunity in the retail space. dan nathan has made his way to the smart board. >> it was not just dollar general. there were two trades that caught my eye. there were short dated call buying, the stock, 5,000 of those were bought. another thing, j.c. penney, somebody closing out a bullish bet. that is closing out a bullish bet.
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the stock was up 6%. they had a pretty good quarter, you know, to me there was a trader that was really interesting that made a bet looking out to may. i want to go to the board. the stock is basically at all time highs here. it was up 6%. the trader bought 10,000 of the may half calls and sold 15,000 and paid about 85 cents for the trade. that is above the high end of this range. okay? so that is up 5.5% on the break even and the maximum gain is at 67.50 where the trader can make $4.15. a pretty bullish bet at all time highs. >> all right. thanks for the options action. more options action tomorrow at 5:30 p.m. eastern time. and check out the website. coming up next, big drama for bitcoin, tanking as china bans its use by banks.
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and one of the traders tried to buy it today but couldn't. he will explain why, next. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪
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welcome back. in case you missed some of today's top moments, here is a rapid fire recap in tonight's executive edge. >> third quarter gdp is off the charts out of expectation range. 3.6. initial jobless claims for the most recent week, well we see that claims moved under 300,000. 298,000. >> i was in latin america and mexico city and one of our clients said that the highest selling smart phones, the biggest market shares are to chinese. they are cheaper. they have a lot of the features so the chinese phones are actually quite interesting they are making that sort of penetration. >> i actually think tapering at
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this point would be a good thing. the analogy i have been using is that qe1 was like taking the needle. it was a patient doa. and it needed that shot of adrenaline to revive it. >> plenty of declining customer visits to the bricks and mortar stores meanwhile online is up 20%. a lot of the gain is from amazon, 55% say it's coming from the online arms of the bricks and mortar retailers. you can still play but you have got to play in the online world. >> i don't know about that. >> guy, gdp looked good, but. >> i liked the way you said that. rick was happy because the headline looked fantastic. if you dig a little bit, 1.7 out of the 3.6 was in inventory build. if there is demand, that is fantastic. that means that 3.6 is a fantastic number.
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but katie bar the door, things could get messy. which is why i think folks ratcheted down. >> what is that katie door? >> it is an old time saying. >> a wild ride continuing today. china central bank issuing a warning. but in the united states, bank of america became the first big wall street firm to cover bitcoin. last week we asked traders which would they rather investment? take a listen to what brian kelly had to say. >> easy for me. bitcoin. >> what? >> are you serious? >> i am dead serious. >> no. >> yes. >> that's your turkey trade for neck ye next year. >> it is a speculative trade. this is tulip mania and i think it goes higher.
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>> we will hold that clip. >> we did hold that clip. does b.k. still think that b bitcoin is a buy? now what? >> i do this it's a buy if you can buy it. it's not as easy. i signed in, was ready to buy it. i wanted to buy it below $1,000 so when i saw it get down to $870, that's what piqued my interest. you put your bid in and you say you need to fund your account but to fund your account you need to be verified and they are getting is many requests that it takes seven to ten days to verify my account. >> by then who knows where bitcoin will be. >> that's right. >> did you get yourself in the queue to be verified so you could pull the trigger?
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>> yes. hopefully seven to ten days from now it will be lower. >> it doesn't scare you that says we're going to cover this virtual currency? >> no, it doesn't scare me. like i said, this is tulip mania. this is complete speculation. i'm not doing it for clients. it's a lottery ticket. it derives its value from the amount of acceptance that it has. you can look at what china did two different ways. either it's a crushing blow or a step towards regulation. there is higher value on it. >> you are making condescending gestures. >> i love beakers, but i don't know why he's not in the office today. he's locked up trying to buy bitcoin. >> he does sound kra kra. >> i'm glad he prefaced it that way. he's doing it for himself, not
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investors. >> as a buyer. >> and that probably speaks to how risky this investment would be that he is willing the do it personally but not with investors' money. i think he understands that, too. >> we have to be clear for the viewers out there. thanks for calling in. >> my pleasure. >> brian kelly joining us on the fast line. much more straight ahead. tdd#: 1-888-648-6021 there are trading opportunities tdd#: 1-888-648-6021 just waiting to be found.
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>> welcome back to "fast money." j.c. penney disclosed that the company received a letter of inquiry from the sec requesting information on the company easterly kidty, their cash position and debt and equity financing as well as the underwritten sale of stock that they made back on september 26. the company says its cooperating fully with the sec's inquiry including providing material requested. watching the j.c. penney shares down about a half a percent. still something to keep an eye on with the jcp trade going on.
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>> yesterday after double digit percent gain, down because of disappointing and today, inexplicably it was down about 9%. maybe now we know why it was down 9%. october 7 is when they learned of the investigation. what day is it today? december 5. two months later. >> i thought they addressed their cash flow. not that i'm saying go buy j.c. penney. i have got to go back. >> it didn't flirt with that. $30 is long term support in the name. this is where you start to get people thinking they are going to be pulled private or taken out. >> was there any weird options activity in jcp? >> it has been fluttering around a lot. >> so you were not listening
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when i was just at the smart board? today somebody bought close to 70,000 of the march 8 puts. here is a magic number, guys. at 965 when they did that deal it was 20% diluted. there is no doubt why guys were getting out of the stock when it just touched ten. yesterday they got massively diluted. some of the news was on the horizon about cash flow issues. two guys were bullish and got out in the last, you know, day, week, whatever. >> got your first move tomorrow when we come right back. stay tuned. ♪ i want to spread a little love this year ♪ [ male announcer ] this december,
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i trade like me. that's why i'm with scottrade. announcer: ranked highest in investor satisfaction with self-directed services by j.d. power and associates. [ male announcer ] this december, experience the gift of unsurpassed craftsmanship at the lexus december to remember sales event. some of the best offers of the year. this is the pursuit of perfection. >> time for the final trade. >> yahoo! still long. i have been talking about this since the low 30s. i still think it moves across. >> broadcome. brcm. stock was moving fast today. >> dan? >> walmart. to me the disconnect between target and walmart. i like the pair. >> guy? >> we talk about the flush and
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nuance of capitulation. icahn announced he raised his stake. >> all right. i'm melissa lee. thank you so much for watching. catch fast money again at 5:00. "mad money" with jim cramer starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to save you some money. my job is not just to entertain but to educate you. call me at 1-800-743-cnbc. battle stations! that's where we are on the eve of the hugely important labor department nonfarm payroll report that

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